After the Bell | January 18, 2022
Corn: March corn futures rose 3 1/4 cents to $5.99 1/2, after falling as low as $5.88 1/4 earlier today. Corn futures erased early losses behind signs of stronger exports and spillover from a rally in wheat. Early today, USDA reported U.S. corn export inspections of 1.204 MMT during the week ended Jan. 13, up from 1.023 MMT the week prior and at the high end of trade expectations. Export strength was underscored by a report China imported 28.4 MMT of U.S. corn during 2021, a 152% increase over 2020.
Soybeans: March soybeans fell 8 1/2 cents to $13.61 1/4, the contract’s lowest settlement since $13.55 1/2 on Jan. 3. March soymeal fell $15.50 to $390.10 per ton, the lowest close since Dec. 20, while March soyoil rose 62 points to 59.08 cents. Soybean futures ended at the lowest levels in over two weeks and soymeal plunged on expectations weekend rains will aid dryness-stressed crops in South America. Rainfall ranging from 0.16 to 1.34 inch reached much of Rio Grande do Sul, Brazil’s southern-most state, over the previous three days, according to World Weather Inc.
Wheat: March SRW wheat rose 27 1/2 cents to $7.69, the highest close in a week. March HRW wheat gained 27 3/4 cents to $7.72 3/4. March spring wheat rose 28 3/4 cents to $9.07. Wheat futures climbed sharply on short covering following three straight down days. Concern Russia may be close to invading Ukraine contributed to strength in wheat, with Reuters reporting the White House believes an invasion may occur soon. In 2014, when Russia annexed Crimea, wheat futures rallied around $1.50. USDA reported 369,188 MMT of U.S. wheat inspected for export in the week ended Jan. 13, up from 234,356 MT the previous week and at the high end of expectations.
Cotton: March cotton rose 138 points to 121.08 cents per pound, the highest close for the nearby contract in 10 years. March also posted a contract high at 121.37 cents. Cotton futures surged despite U.S. dollar strength and U.S. stock market declines, though a crude oil rally to seven-year highs provided background support. Also, ideas inflation will get worse before it gets better are also likely driving some stockpiling of cotton by end-users and buying interest in futures from the speculators.
Cattle: April live cattle fell 27.5 cents to $141.85. March feeders fell 95 cents to $165.425. Packers are grappling with Covid-related worker absenteeism, as illustrated by slaughter numbers the past two weeks averaging about 5.0% under year-ago rates. The slowdown is contributing to weakness in cash cattle prices. Live steers last week averaged $136.61, down $1.80 from the previous week and the fifth weekly decline in the past six. Further cash weakness is expected this week. Choice cutout values rose $1.63 to $289.49, the highest daily average since Nov. 5 and an indication packers' expanding margins give them incentive to step up slaughter. Movement totaled 124 loads.
Hogs: April lean hog futures rose 82.5 cents to $89.275, matching the Jan. 6 close for the highest settlement since Oct. 1. Hogs rose for the third session in the past four on followthrough momentum from last week’s gains and strengthening cash fundamentals. The next CME lean hog index is expected to rise another 88 cents to $76.78, the highest since Nov. 10. Pork cutout values fell $4.73 today to $87.21, erasing a morning gain as primal hams fell over $10. Movement totaled about 332 loads.
